ST ANDREWS, Scotland (Reuters) - Following are comments on Saturday from Group of 20 finance ministers, central bank policymakers and officials meeting in Scotland.
U.S. TREASURY SECRETARY TIMOTHY GEITHNER
On bank transaction tax:
"A day-by-day financial transaction tax is not something we are prepared to support."
"This idea (of a bank transaction tax) has been around for a long time ... I think frankly the experiences are mixed."
"In the U.S. we have some specific proposals for the future in which if the government acts to protect the economy from losses (caused by financial institutions) the government losses could be recouped via a tax. That reduces the risk of moral hazard and ensures pension funds don't bear the losses. We look forward to working with our counterparts on this."
On exit strategy:
"It is too early to start to lean against recovery."
"If we put the brakes on too quickly we will weaken the economy and the financial system, unemployment will rise, more businesses will fail, budget deficits will rise, and the ultimate cost of the crisis will be greater." "With growth now underway and the financial fires winding down, the policy challenge is changing. The first stage was the emergency rescue."
"The next stage was catalyzing private demand and business investment. This will require continued policy support."
On climate change financing:
"We need to see if we can help make sure that as finance ministers we can make a positive outcome more likely. But my own sense from conversations with colleagues from Brazil, India, Russia is that we are making progress."
BRITISH FINANCE MINISTER ALISTAIR DARLING
Asked if lack of Geithner support rules out transaction tax:
"No it doesn't. The U.S. like we do recognize that there are various issues you have to deal with and that a lot of work is required. I've discussed the issue with Tim over the past two days and I know his position and we know ours."
"By their very nature financial institutions are pretty global. The IMF discussed this at Pittsburgh. Of course we had discussions with individual countries. It's an issue where there's a lot of interest and where people understand that there's a lot of road to travel. The prime minister was absolutely clear we will not do that on our own."
On China's yuan:
"We didn't discuss the renminbi. I think that's a question for China rather than us."
CANADIAN FINANCE MINISTER JIM FLAHERTY
On transaction tax:
"That discussion is worthwhile having, in the context that financial institutions if they get in trouble should bear the consequences of their own demise. It's one of the ideas that's on the table, but is not particularly attractive to me as finance minister of Canada. We have been a government that has been reducing taxes."
INTERNATIONAL MONETARY FUND CHIEF DOMINIQUE STRAUSS-KAHN
"We can't go on with a system where some individuals take risks that finally all taxpayers, like you and me, have to pay for. The financial industry has made such big innovations that it is probably impossible to find a transaction tax that will not be avoidable by potential taxpayers. So it will be based not on transactions but on something else."
He said there were two possibilities for a bank sector tax, including a "possible windfall tax for 2009, a one shot thing."
The other would be a more long-term tax.
"I didn't plan to talk about this (today), but as Gordon Brown unveiled it, I decided to ... I am very happy to have the support of Gordon Brown on this."
EUROPEAN CENTRAL BANK PRESIDENT JEAN-CLAUDE TRICHET
"We had an occasion to tell what was our understanding of the progressive phasing-out of the non-conventional measures that have been decided on both sides of the Atlantic, but also by other central banks.
"All non-conventional measures have been designed to permit, when necessary, in a gradual fashion, a progressive phasing out of these non-conventional measures.
"But at this stage, we were exchanging views, and it appears also that on the other side of the Atlantic the same kind of progressive, gradual phasing out of non-conventional measures is envisaged."
"All of us, to my knowledge, have said that when needed, and where needed, there would be the phasing out of unconventional measures in a timely and gradual fashion ... All central banks and certainly the ECB are doing all that is necessary, but no more than is necessary."
SWEDISH FINANCE MINISTER ANDERS BORG
On climate change financing:
"There has been very limited flexibility from some of the countries, even if developed countries have been ready to set up substantial amounts -- there has been a limited flexibility from the other side to commit to fast track financing but also to a cooperative spirit in these issues."
"The discussion has been open and constructive and we have clarified positions, but we need to see more flexibility more commitment otherwise we will lend up with a very, very difficult situation in Copenhagen."
